February 22, 2012

How Zappos Affects Your Customer Experience

Who is your customer experience competition? Those of you only looking inside your own industry need to take a look around, as your competitors are not who you think they are – especially online. Organizations should be asking this question: Which companies have the best practices in customer focus across all industries?

I recently exchanged Facebook messages with Deb Robison, a smart marketing and social media gal. She wanted to share a customer service story with me and get my take on it.  Here is her story:

I got a new computer recently and needed to order some accessories. Around this same time, I needed some shoes and books. I placed orders with Zappos, Amazon, Apple, and a designer’s shop, Jonathan Adler. Of course, the three big guys sent me order acknowledgment and tracking info all through the process. I got an order notification from (ordered a laptop sleeve) Jonathan Adler, then nothing, so a few days after I placed the order, I sent an email asking if my order had shipped. Later the next day I got an email from a customer service rep explaining that they did receive my order and that “my colleague is trying to find your bag at one of their stores.” Once it ships, I would get a shipping notification. That was two days ago. And, I noticed they have already charged my credit card.

So my question is this – are my customer service expectations skewed because I have dealt with some big companies that have solid customer service and shipping systems in place? (Note: Zappos had the best and most prompt services of the three big companies, of course.) Jonathan Adler is a smaller brand, but a high-end one and kind of trendy right now, so is it fair for me to set the same expectations on them?

My expectations have clearly been shaped by the immediacy which other retailers respond & deliver. Is that fair? As customers, we never had this kind of relationship before. We used to get out the catalog, fill out the form, put a check in the envelope and wait.

Yes, Deb, customer expectations are absolutely set based on our experiences with companies such as Zappos and Amazon. In fact, every interaction we have with a company sets our expectation for the next interaction, whether with that business or with another completely different organization. Additionally, the online experiences that customers have with companies, whether on the company website or via social media, are creating a higher degree of visibility. In social media, this becomes even more important as the social customer’s friends and followers are also watching, and sometimes sharing the experience with their network (unfortunately, this is more often the case when the experience has been poor).

Customer Expectations of Service

It is important to understand the needs of your customers, as well as their wants and desires. It is also critical to understand what they expect when they contact your company. Typically, customer expectations of service tend to fall into three areas:

- Customers want fast service: They want their problems solved or questions answered quickly. “Help me get back to what I need to do.”

- Customers want friendly service: They want to feel that the company appreciates their business. “Help me know that you care about me.”

- Customers want it to be easy: They want to be able to accomplish the task in the most efficient way possible. “Help make this simple for me.”

The three areas listed above may change in priority based on who your customer is, what kind of relationship they have had with your organization, and, as mentioned by Deb, what types of interactions they have had with your company and with others. Do you know what your customers want from you?

Taking Action

What can you do tomorrow to improve the experience your customers are having with your company?

1. Ask your customers. Really – go ask them! Find out what they expect from you, what you are doing well, and what you need to improve. Your customers will probably be happy to tell you, and they will also be glad you asked.

2. Look in the mirror. When is the last time you or someone from your organization called into your customer service line? Ordered something from your website? Tried to get help via your social media channels? Find out what it feels like to be your customer; I encourage you to look for both areas of improvement as well as your own best practices to share with your organization.

3. Look at the competition – from your customer’s perspective. Understand who is competing with you for the best customer experience, keeping in mind that it may not be anyone within your industry.

A world-class customer experience doesn’t happen by accident. It takes a plan that can be executed across all aspects of your organization. Your customer experience strategy should facilitate consistent treatment of customers, cultivate customer trust, and enable meaningful interactions at all points of customer contact. Most importantly, it should meet and exceed customer expectations. Now you have a customer experience that will ignite passion, inspire brand loyalty, and cement relationships.

Focus on Customer Service in 2010 (Finally?)

focusThis may be it. This may be the year that it finally happens. 2010 may just be the year that companies start to focus on their customers and serving them well.

Now, I am cautiously optimistic about this focus on customer service, but let me tell you why I feel this way.

- Brands are using a focus on customers as a competitive differentiator in their advertisements. Frank Eliason mentions the new commercial for the Chase Sapphire credit card service. It features the ability to talk “directly to a live person when I call” rather than being routed around an automated call queue. The new Domino’s Pizza commercials talk about how they have been listening to their customers and have improved their pizza as a direct result. Phil, who Tweets for them from Domino’s HQ, talks about how they have been serious about customer feedback and been researching this for 2 years. Kudos to these two companies and the many others who are making it public that they care about their customers and what they think of their brands.

- I am hearing more and more that “Customer Service is the New Marketing” from smart folks in the social media space (including in the above post from Frank Eliason). This isn’t a new concept; in fact, I spoke at a conference of the same name 2 years ago this February (where I first met Tony Hsieh from Zappos). Every customer touch is another brand impression of the company. Each contact with customer service, whether by phone, email, Twitter, or self-service is a brand impression. Each customer service representative says more about the brand by how they treat a customer during an interaction than any marketing campaign.

- Customers are having ongoing conversations with brands and with each other about products and services. Companies are realizing how influential these conversations are now that they are starting to listen to them via social media monitoring. And it is a good thing they are doing so. As I tweeted out earlier this week,

“Customer service is more critical than ever. The combo of social media and mobile devices = the perfect storm for an angry customer.”


Think about this scenario. A customer is standing in line at a retail store. The line is very long, and the checker seems to be taking forever. The customer feels like complaining to the closest person who will listen, and it is at his fingertips: Twitter/Facebook/posterous via his mobile phone. It is imperative that brands and companies constantly listen, and more of them than ever seem to be doing so. Those who are not will fall behind in 2010.

In my opinion, all the signs are pointing in the right direction for a focus on great customer service, and with it a rockin’ customer experience in 2010. Those companies that “get it” will rebound from this recession faster than those that don’t. Those companies that “get it” will have loyal customers who shout about how great that company is to anyone who will listen. Those who don’t may just hear a lot of shouting as their customers complain very publicly and then walk away.

What do you think? Is 2010 the year for a focus on the customer?

(Image credit: michaeldb)

Top 3 Customer Rock Stars for 2008

I was asked to spend a few minutes recently on the Big Biz Show (a nationally-syndicated radio program) discussing my thoughts about business in 2008 with a look ahead to 2009. I thought I would share some of those insights here at Customers Rock! to inspire you for the upcoming year.

A Rockin’ Year with Some Great Companies

This past year, I highlighted several companies where “Customers Rock!” for them. These companies have great customer focus, operate in a way that is customer-centric, or just did something really, really cool for their customers.  Before I get to the Top 3 Customer Rock Stars, below are some of the runners-up:

  • Urbane Apartments – remarkable customer experience with Urbane Loves Pets and Freedom Lease
  • Ikea – focus on the customer buying experience
  • Comcast – social media listening turns complainers into fans
  • Coldwater Creek – making customers feel like royalty
  • TurboTax – customer engagement via social media
  • Wells Fargo – WOW customer experience and corporate focus
  • Hometown Buffet – personal attention makes the difference
  • Starbucks – customer-focused coffee specials
  • Musician’s Friend – above and beyond customer service

Check out the links above for their stories – all of them inspiring. And now, with no further ado…

Rock Star Number 3: FreshBooks

Freshbooks is an online invoicing and time tracking service.  They are a Customer Rock Star because they do everything with the customer in mind. More importantly, they spend time with their customers – lots of it.  In my post “Freshbooks Rocks: Getting Personal with Customers”, I described how the Freshbooks team, including their CEO, spends time having meals with customers whenever they travel. In fact, last year when they went to SxSW to speak, they rented an RV and had breakfast, lunch, and dinner with customers along the way! The best thing about these customer meals (I would know, they invited me to one, as I am a Freshbooks customer), is they are NOT about Freshbooks pitching their products and what they do. Rather, they are about their customers getting to know each other better, as these people all live and work in the same city.  Along the way, Freshbooks employees get the chance to hear some great customer insights.

Customer listening is a focus for Freshbooks, and it is what gets them into my Top 3 Customer Rock Stars for 2008. Congrats, Mike, Saul, and team. Freshbooks Rocks!

Rock Star Number 2: Zappos.com

If you aren’t familiar with Zappos.com and you buy shoes, you should get to know them. Zappos.com is an online retailer that started by selling shoes over the web; they now also sell many other things such as clothing, accessories, and jewelry. Their main focus, however, is not the products they sell – it is customer service. In fact, their tagline is “Powered by Service”. I met Tony Hsieh, CEO of Zappos.com, this past February when I spoke at the Customer Service is the New Marketing event. Tony shared with me that they don’t want to be known as a shoe company with great customer service; Zappos.com is a customer service company that happens to sell shoes. I like his focus.

One can find many, many stories on Tony and Zappos.com, as they have become fairly well known for this customer service. I have my own story from Christmas this year. I was looking to find my husband a new pair of Keen sandals, and I couldn’t find his size at Zappos.com. I gave them a call to see if they might be getting some in, and they told me they wouldn’t have any in time for Christmas. However, what happened next really impressed me! The call center rep looked up the sandals on the web and recommended a competitor’s website to me!!  She told me they had the size and color I was seeking, and they also had free shipping both ways (just like Zappos.com does). After thanking her profusely, I asked her why she recommended a competitor to me.  She said, “We want you to be happy, and we want you to come back to Zappos.”  I was, and I will!

Customer service is more than just a focus for Zappos.com; it is their company’s culture and what gets them into my Top 3 Customer Rock Stars for 2008. Congrats, Tony and team! Zappos rocks!!

Rock Star Number 1: Bungie Studios

Who? Bungie. Bungie Studios is the maker of the popular video game series Halo. They are known for treating their customers very well, but the reason they are my number one Customer Rock Star is that they take care of other people’s customers, too!

This past March, a video gamer who is a big fan of Halo had a problem with his gaming console/hardware. It was a special console because he had collected original Halo artwork and autographs on it from the team that developed the game. Unfortunately, when he sent in his console for repair, the artwork and autographs were accidentally erased.  Result: one very sad video gamer.

Bungie Studios heard about this through some blogs and decided that, although it had not been their mistake, they wanted to do something to help make it better. So they gathered up a HUGE amount of Halo-3 goodies and sent them off to this depressed gamer even though they had nothing to do with the problem. As you can imagine, he was thrilled to get this fabulous box of “swag”, as it was completely unexpected. (You can see photos of some of his gifts on my previous post about Bungie.)

In my opinion, what was even more cool was that the blog post describing his “swag bag” received over 600 comments from fans of the Halo video game, all glowing about Bungie Studios. What a great way to touch your customer community!

How did Bungie Studios do it?

- They were listening to their customers, using social media.

- They had previously built up a strong community (see their website for forums, insider information, and an open and honest attitude including Bungie podcasts, photos, and webcams!)

- They decided to “do the right thing”, even though they were not the ones in the wrong

- Bungie has prioritized customers as a critical success factor for their business – and has acted on it.

Clearly, Customers Rock! for Bungie Studios.  Way to go, Bungie Studios, on being the Number One Customer Rock Star for 2008!

Looking Ahead to 2009

This year, a focus on customers will become more important than ever as companies struggle with the economy worldwide while consumers and businesses alike become more conservative with their spending. Customer retention will be critical, as will encouraging customer advocates to share their great experiences with others.  Stay tuned to Customers Rock! for more great ideas and stories of how companies are doing it right, all throughout 2009.

(Photo credit: ussr)